Borelli Tea Holdings (Borelli), the 100 per cent subsidiary of Mcleod Russel India, today signed a term sheet with Belgium-based SA SIPEF NV for acquisition of 100 per cent equity stake in Vietnam-based Phu Ben Tea Company at a cost of $ 2 million, the company informed Bombay Stock Exchange.
In addition, Borelli will have to arrange a Bank Guarantee to secure repayment of inter-company balance of $ 5.01 million granted by the seller to Phu Ben Tea Company. The inter-company balance shall be paid by Phu Ben Tea Company within three years in equal instalments at the end of 2009, 2010 and 2011.
Phu Ben Tea Company is engaged in growing, manufacturing and selling of Tea and produces around 4.5 million kgs of tea annually in its three Tea Processing Factories.
